Hayward Posts 7% 2025 Sales Gain and Guides $0.82-$0.86 EPS, $200M FCF
Hayward reported 2025 net sales of $1.12 billion, up 7%, with Adjusted EBITDA rising 8% to $299 million and adjusted diluted EPS up 7% to $0.29. For 2026, forecasts 4% net sales growth, adjusted EPS of $0.82-$0.86 and $200 million in free cash flow while reducing net leverage to 1.9x.
1. Financial Performance
Hayward recorded 2025 net sales of $1.12 billion, up 7% year-over-year, driven by 5% price gains and a 1% contribution from the ChlorKing acquisition. Adjusted EBITDA grew 8% to $299 million, lifting margin by 30 basis points to 26.7%, while adjusted diluted EPS increased 7% to $0.29.
2. Accounting Presentation Change
Effective in Q4 2025, Hayward reclassified warranty costs from SG&A to cost of sales. This had no impact on net income or Adjusted EBITDA but shifted reported cost of sales, gross profit and SG&A expenses, resulting in a record quarterly gross margin of 48.5%.
3. Regional Segment Results
In Q4, North America net sales rose 8% to $309 million, with U.S. up 8% and Canada up 10%, driving an 80 basis point gross margin improvement to 50.1%. Europe and Rest of World revenue held at $41 million, with a 5% foreign exchange tailwind offsetting volume declines, boosting segment margin to 35.8%.
4. 2026 Outlook and Cash Flow
For 2026, Hayward forecasts 4% net sales growth, adjusted EPS of $0.82–$0.86 and $200 million in free cash flow, targeting net leverage of 1.9x. Guidance assumes 3% net price gains, modest volume growth, neutral FX, $45 million in interest expense, a 24% tax rate and $40 million in capital expenditures.